Total manufacturing sales reached a record high, rising 1.3% to $78.1 billion in May. This was the fourth consecutive monthly increase. In May, sales rose in 14 of the 21 subsectors, led by the transportation equipment (+4.1%) and chemical (+4.6%) subsectors. Meanwhile, the electrical equipment, appliance and component subsector posted the largest decline (-5.8%). On a year-over-year basis, total manufacturing sales increased 13.4% in May, reported Statistics Canada.
In constant dollars, total manufacturing sales rose 0.5% in May, while the Industrial Product Price Index increased 1.2%.
Motor vehicle sales lead the increase
Sales of motor vehicles increased 11.8% to $4.6 billion in May, following a 4.6% decline in April. The gain was driven by higher sales of automobiles and light-duty motor vehicles, as well as heavy-duty trucks. On a year-over-year basis, total sales in the motor vehicle industry group increased 9.0% in May, explained Statistics Canada.
"In the chemical subsector, sales increased 4.6% to $5.9 billion in May, marking the third consecutive monthly gain and the highest level since July 2024. Sales rose in all but one chemical industry group, with the largest increase occurring in basic chemical manufacturing. The gain in total chemical product sales in current dollars stemmed from higher prices as sales in real terms were down 1.7% in May," it said.
"Sales in the electrical equipment, appliance and component subsector posted the largest decline, decreasing 5.8% to $1.4 billion in May. Lower-than-usual seasonal sales of electrical equipment were the primary factor behind the decline. The decrease in the subsector was broad-based and observed across multiple industry groups. Despite the month-over-month decrease, total sales in the electrical equipment, appliance and component subsector were 8.1% higher in May compared with the same month a year earlier."